Conference Agenda

Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).

Please note that all times are shown in the time zone of the conference. The current conference time is: 14th May 2024, 04:15:09pm EDT

 
 
Session Overview
Session
Track M5-3: Boards, Governance, and Institutional Investors
Time:
Monday, 20/May/2024:
10:30am - 11:15am

Session Chair: Tracy Yue Wang, University of Minnesota
Discussant: Tingting Liu, Iowa State University
Location: Room 501


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Presentations

Under Pressure: The Increasing Turnover-Performance Sensitivity for Corporate Directors

Thomas Bates1, David Becher2, Jared Wilson3

1Arizona State University; 2Drexel University; 3Indiana University

This paper examines the relation between firm performance and turnover for the directors of public companies over the last two decades. In the mid-2000s, firms with stock price performance in the lowest quartile of the sample exhibit a 15% greater likelihood of director turnover. By the late-2010s, this figure nearly doubles to 28%, a probability that is equivalent to the turnover-performance sensitivity (TPS) for CEOs. We document several factors that contribute to the increase in director TPS over time including trends towards independent board chairs and nominating committees. In addition, the increase in director TPS is most pronounced for firms with a lower local supply of prospective replacement directors and for firms with attentive institutional investors.


Bates-Under Pressure-1588.pdf


 
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